Technology
Lockheed Martin Reports Third Quarter 2024 Financial Results
Published
2 years agoon
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Net sales of $17.1 billion, an increase of 1% year over yearNet earnings of $1.6 billion, or $6.80 per shareCash from operations of $2.4 billion and free cash flow of $2.1 billion$1.6 billion of cash returned to shareholders through dividends and share repurchases Increased share repurchase authority by $3.0 billion to a total authorization of $10.3 billionIncreased quarterly dividend 5% to $3.30 per share2024 financial outlook increased
BETHESDA, Md., Oct. 22, 2024 /PRNewswire/ — Lockheed Martin Corporation [NYSE: LMT] today reported third quarter 2024 net sales of $17.1 billion, compared to $16.9 billion in the third quarter of 2023. Net earnings in the third quarter of 2024 were $1.6 billion, or $6.80 per share, compared to $1.7 billion, or $6.73 per share, in the third quarter of 2023. Cash from operations was $2.4 billion in the third quarter of 2024, compared to $2.9 billion in the third quarter of 2023. Free cash flow was $2.1 billion in the third quarter of 2024, compared to $2.5 billion in the third quarter of 2023.
“In the third quarter, we advanced our strategic, operational and financial priorities, as demonstrated by our record backlog of more than $165 billion, 48 F-35 deliveries, increased production on missile programs, and $2.1 billion of free cash flow generation,” said Lockheed Martin Chairman, President and CEO Jim Taiclet.
“As a result of our strong year-to-date results and confidence in our near-term performance, we are raising the outlook for full year 2024 sales, segment operating profit, EPS and free cash flow. Looking forward, we continue to make progress on the three key initiatives of our 21st Century Security® strategy of strengthening the resiliency and scalability of our production system, accelerating cutting edge digital and physical technologies into all our mission solutions and our internal operations, and expanding international partnerships to broaden our production capacity and drive more international sales. We are making substantial investments in these areas, while continuing to focus on our fundamental financial objective of driving free cash flow per share growth to generate returns for shareholders. Given our confidence in the company’s ability to deliver on these objectives, our Board has also approved a five percent increase in our quarterly dividend, the 22nd consecutive year of increases.”
Summary Financial Results
The following table presents the company’s summary financial results.
(in millions, except per share data)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 17,104
$ 16,878
$ 52,421
$ 48,697
Business segment operating profit1
$ 1,870
$ 1,810
$ 5,657
$ 5,347
Unallocated items
FAS/CAS pension operating adjustment
406
414
1,218
1,245
Impairment and severance charges
—
—
(87)
—
Intangible asset amortization expense
(61)
(61)
(183)
(185)
Other, net
(75)
(121)
(288)
(193)
Total unallocated items
270
232
660
867
Consolidated operating profit
$ 2,140
$ 2,042
$ 6,317
$ 6,214
Net earnings2
$ 1,623
$ 1,684
$ 4,809
$ 5,054
Diluted earnings per share2
$ 6.80
$ 6.73
$ 20.05
$ 19.97
Cash from operations3
$ 2,438
$ 2,891
$ 5,949
$ 5,555
Capital expenditures
(355)
(364)
(1,103)
(987)
Free cash flow1,3
$ 2,083
$ 2,527
$ 4,846
$ 4,568
1
Business segment operating profit and free cash flow are non-GAAP measures. See the “Use of Non-GAAP Financial Measures” section of this news release for more information.
2
Net earnings for the quarter ended Sept. 29, 2024 included $14 million ($10 million, or $0.04 per share, after-tax) of net non-operational charges. See “Adjusted earnings before income taxes; adjusted net earnings and adjusted diluted EPS” table for further details.
3
See the “Cash Flows and Capital Deployment Activities” section of this news release for more information.
F-35 Lots 18-19 Contract Update
The company remains in negotiations with the U.S. Government on the Lots 18-19 production contract. Although negotiations for this contract are in process, the company has been performing work on Lots 18-19 production under initial customer authorization and funding to begin work pursuant to an advance acquisition contract received in the fourth quarter of 2023. The company and its industry team continue work in an effort to meet the customer’s desired aircraft delivery dates for the Lots 18-19 aircraft. The company’s costs began to exceed the advanced acquisition contract value in the third quarter of 2024. As a result, the company was unable to recognize revenue and profit on approximately $400 million of costs incurred on the program in the third quarter of 2024, with at least an additional $300 million of impacts across the supply chain. Additionally, the company was prevented from invoicing and receiving cash of approximately $450 million through the third quarter of 2024. At the end of the third quarter of 2024, the company also had approximately $2 billion in potential termination liability exposure to third parties related to Lots 18-19 (some of which would be recoverable in the unlikely event of a termination). Currently, the company expects to receive contractual authorization and funding on the Lots 18-19 production contract with the U.S. Government and resume invoicing costs incurred and recover sales, profit, and cash in the fourth quarter of 2024. However, until a final agreement is reached, or the U.S. Government otherwise provides additional contractual authorization and funding, the company’s results of operations, cash flows, and financial condition will continue to be negatively impacted, and the impacts could be material and differ from the company’s current 2024 outlook.
2024 Financial Outlook
The following table and other sections of this news release contain forward-looking statements, which are based on the company’s current expectations. Actual results may differ materially from those projected. It is the company’s practice not to incorporate adjustments into its financial outlook for proposed or potential acquisitions, divestitures, ventures, pension risk transfer transactions or discretionary contributions, financing transactions, changes in law, or new accounting standards until such items have been consummated, enacted or adopted. For additional factors that may impact the company’s actual results, refer to the “Forward-Looking Statements” section in this news release.
(in millions, except per share data)
Current Update1
July 2024
Net sales
~$71,250
$70,500 – $71,500
Business segment operating profit2
~$7,475
$7,350 – $7,500
Total FAS/CAS pension adjustment
~$1,685
~$1,685
Diluted earnings per share3
~$26.65
$26.10 – $26.60
Cash from operations
~$7,950
$7,750 – $8,050
Capital expenditures
~$1,750
~$1,750
Free cash flow2
~$6,200
$6,000 – $6,300
1
The company’s current 2024 financial outlook is premised on receiving contractual authorization and funding on the F-35 Lots 18-19
production contract in the fourth quarter of 2024.
2
Business segment operating profit and free cash flow are non-GAAP measures. See the “Use of Non-GAAP Financial Measures” section of
this news release for more information.
3
Although the company typically does not update its outlook for proposed changes in law, the above includes the effect of IRS Notice 2023-63
confirming that certain expenditures incurred in the performance of cost-type contracts are not subject to capitalization for tax purposes. The
company believes incorporating the clarification from the Notice more accurately reflects its expectations because the Notice describes the tax
treatment of certain expenditures in accordance with the company’s analysis of the Internal Revenue Code.
Cash Flows and Capital Deployment Activities
The decrease in operating and free cash flows in the third quarter of 2024 compared to the same period in 2023 was primarily due to a decrease in working capital (defined as receivables, contract assets, and inventories less accounts payable and contract liabilities), which includes the cash impacts for the lack of additional contractual authorization and funding from the U.S. Government prior to the end of the third quarter of 2024 on the Lots 18-19 contract of the F-35 program.
The company’s cash activities in the third quarter of 2024, included the following:
paying cash dividends of $749 million; andpaying $850 million to repurchase 1.5 million shares.
As previously announced on Oct. 2, 2024, the company’s board authorized the repurchase of its common stock up to an additional $3.0 billion, increasing the total authorization for potential future common stock repurchases to $10.3 billion. The stock repurchase program does not have an expiration date and may be amended or terminated by the board of directors at any time. The amount of shares ultimately purchased and the timing of purchases are at the discretion of management and subject to compliance with applicable law and regulation.
Additionally, on Oct. 2, 2024, the company authorized a fourth quarter dividend payment of $3.30 per share, representing an increase of $0.15 per share over the prior quarterly dividend payment.
Segment Results
The company operates in four business segments organized based on the nature of products and services offered: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The following table presents summary operating results of the company’s business segments and reconciles these amounts to the company’s consolidated financial results.
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
Aeronautics
$ 6,487
$ 6,717
$ 20,609
$ 19,861
Missiles and Fire Control
3,175
2,939
9,270
8,082
Rotary and Mission Systems
4,367
4,121
13,003
11,528
Space
3,075
3,101
9,539
9,226
Total net sales
$ 17,104
$ 16,878
$ 52,421
$ 48,697
Operating profit
Aeronautics
$ 659
$ 671
$ 2,089
$ 2,064
Missiles and Fire Control
456
398
1,217
1,146
Rotary and Mission Systems
483
482
1,408
1,286
Space
272
259
943
851
Total business segment operating
profit
1,870
1,810
5,657
5,347
Unallocated items
FAS/CAS operating adjustment
406
414
1,218
1,245
Impairment and severance charges
—
—
(87)
—
Intangible asset amortization
expense
(61)
(61)
(183)
(185)
Other, net
(75)
(121)
(288)
(193)
Total unallocated items
270
232
660
867
Total consolidated operating profit
$ 2,140
$ 2,042
$ 6,317
$ 6,214
For information on factors impacting comparability of the company’s segment sales, operating profit and operating margins, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2023.
The company’s consolidated net favorable profit booking rate adjustments represented approximately 20% and 19% of total segment operating profit in the quarters ended Sept. 29, 2024 and Sept. 24, 2023. During the quarter ended Sept. 29, 2024, the company recognized losses of $80 million on a classified program at the company’s Aeronautics business segment due to higher than anticipated costs to achieve program objectives.
Aeronautics
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 6,487
$ 6,717
$ 20,609
$ 19,861
Operating profit
659
671
2,089
2,064
Operating margin
10.2 %
10.0 %
10.1 %
10.4 %
Aeronautics’ net sales in the third quarter of 2024 decreased $230 million, or 3%, compared to the same period in 2023. The decrease was primarily attributable to lower net sales of $480 million on the F-35 program due to lower volume on production contracts as a result of delays in receiving additional contractual authorization and funding under the Lots 18-19 contract. This decrease was partially offset by higher net sales of $120 million on the C-130 program primarily due to higher volume on production and sustainment contracts; and $85 million on the F-16 program due to the ramp up on production.
Aeronautics’ operating profit in the third quarter of 2024 decreased $12 million, or 2%, compared to the same period in 2023. The decrease in operating profit was attributable to $25 million from lower volume described above and $20 million from unfavorable contract mix, partially offset by $30 million of higher profit booking rate adjustments. The increase in profit booking rate adjustments included an $85 million favorable profit rate adjustment for a claim associated with a contract to modernize and install new engines in C-5 Galaxy aircraft, partially offset by $80 million of unfavorable profit rate adjustments on a classified program due to higher than anticipated costs to achieve program objectives.
Missiles and Fire Control
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 3,175
$ 2,939
$ 9,270
$ 8,082
Operating profit
456
398
1,217
1,146
Operating margin
14.4 %
13.5 %
13.1 %
14.2 %
MFC’s net sales in the third quarter of 2024 increased $236 million, or 8%, compared to the same period in 2023. The increase was primarily attributable to higher net sales of $285 million for tactical and strike missile programs due to production ramp up on Guided Multiple Launch Rocket Systems (GMLRS) and Long Range Anti-Ship Missile (LRASM) programs. This increase was partially offset by lower net sales of $90 million for integrated air and missile defense programs due to lower volume on Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense (THAAD).
MFC’s operating profit in the third quarter of 2024 increased $58 million, or 15%, compared to the same period in 2023. The increase in operating profit was attributable to $35 million of higher profit booking rate adjustments and $20 million from volume described above. The increase in profit booking rate adjustments was primarily due to higher favorable profit rate adjustments on PAC-3 as a result of better than anticipated cost performance.
Rotary and Mission Systems
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 4,367
$ 4,121
$ 13,003
$ 11,528
Operating profit
483
482
1,408
1,286
Operating margin
11.1 %
11.7 %
10.8 %
11.2 %
RMS’ net sales in the third quarter of 2024 increased $246 million, or 6%, compared to the same period in 2023. The increase was primarily attributable to higher net sales of $185 million on integrated warfare systems and sensors (IWSS) programs due to higher volume on radar programs and the Canadian Surface Combatant (CSC) program; and $50 million for Sikorsky helicopter programs due to higher production volume on CH-53K, Seahawk and Black Hawk programs.
RMS’ operating profit in the third quarter of 2024 was comparable to the same period in 2023 as a $25 million increase due to the higher volume described above was offset by $25 million of lower profit booking rate adjustments. The decrease in profit booking rate adjustments was primarily due to a reach-forward loss recognized on a radar program as a result of additional quantity ordering risk identified on fixed-price options.
Space
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 3,075
$ 3,101
$ 9,539
$ 9,226
Operating profit
272
259
943
851
Operating margin
8.8 %
8.4 %
9.9 %
9.2 %
Space’s net sales in the third quarter of 2024 decreased $26 million, or 1%, compared to the same period in 2023. The decrease was primarily attributable to lower net sales of $50 million for commercial civil space due to lower volume on the Orion program, partially offset by higher volume on other space exploration programs. This decrease was partially offset by higher net sales of $25 million for strategic and missile defense programs due to higher volume on reentry programs.
Space’s operating profit in the third quarter of 2024 increased $13 million, or 5%, compared to the same period in 2023. The increase in operating profit was attributable to $25 million related to favorable contract mix across the portfolio, partially offset by $10 million of lower equity earnings driven by lower launch volume from the company’s investment in United Launch Alliance (ULA). Profit booking rate adjustments were comparable.
Total equity earnings (ULA) represented approximately $5 million, or 2% of Space’s operating profit in the third quarter of 2024, compared to approximately $15 million, or 6% for the same period in 2023.
Income Taxes
The company’s effective income tax rate was 15.4% and 13.8% for the quarters ended Sept. 29, 2024 and Sept. 24, 2023. The rate for the third quarter of 2024 was higher than the third quarter of 2023 primarily due to additional research and development tax credits that were claimed for years prior to 2023 reflected in the 2023 rate. The rates for both periods benefited from research and development tax credits, tax deductions for foreign derived intangible income and dividends paid to the company’s defined contribution plans with an employee stock ownership plan feature.
Use of Non-GAAP Financial Measures
This news release contains the following non-generally accepted accounting principles (non-GAAP) financial measures (as defined by U.S. Securities and Exchange Commission (SEC) Regulation G). While management believes that these non-GAAP financial measures may be useful in evaluating the financial performance of the company, this information should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. In addition, the company’s definitions for non-GAAP financial measures may differ from similarly titled measures used by other companies or analysts.
Business segment operating profit
Business segment operating profit represents operating profit from the company’s business segments before unallocated income and expense. This measure is used by the company’s senior management in evaluating the performance of its business segments and is a performance goal in the company’s annual incentive plan. Business segment operating margin is calculated by dividing business segment operating profit by sales. The table below reconciles the non-GAAP measure business segment operating profit with the most directly comparable GAAP financial measure, consolidated operating profit.
(in millions)
2024 Outlook
Business segment operating profit (non-GAAP)
~$7,475
FAS/CAS operating adjustment1
~1,625
Intangible asset amortization expense
~(245)
Other, net
~(485)
Consolidated operating profit (GAAP)
~$8,370
1
Reflects the amount by which total CAS pension cost of $1.7 billion, exceeds FAS pension service cost and excludes non-service FAS pension income. Refer to the supplemental table “Selected Financial Data” included in this news release for a detail of the FAS/CAS operating adjustment.
Free cash flow
Free cash flow is cash from operations less capital expenditures. The company’s capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs for the development or purchase of internal-use software that are capitalized). The company uses free cash flow to evaluate its business performance and overall liquidity and it is a performance goal in the company’s annual and long-term incentive plans. The company believes free cash flow is a useful measure for investors because it represents the amount of cash generated from operations after reinvesting in the business and that may be available to return to stockholders and creditors (through dividends, stock repurchases and debt repayments) or available to fund acquisitions or other investments. The entire free cash flow amount is not necessarily available for discretionary expenditures, however, because it does not account for certain mandatory expenditures, such as the repayment of maturing debt and future pension contributions.
Adjusted earnings before income taxes; adjusted net earnings and adjusted diluted EPS
Earnings before income taxes, net earnings and diluted earnings per share (EPS) were impacted by certain non-operational items for all periods. Management believes the presentation of these measures adjusted for the impacts of these non-operational items is useful to investors in understanding the company’s underlying business performance and comparing performance from period to period. The tax effects related to each adjustment that impacted earnings before income taxes are based on a blended tax rate that combines the federal statutory rate of 21% plus an estimated state tax rate.
The table below shows the impact to earnings before income taxes, net earnings and diluted EPS for certain non-operational items:
(in millions, except per share data)
Quarters Ended
Sept. 29,
2024
Sept. 24,
2023
Earnings
Before
Income
Taxes
Net
Earnings
Diluted
EPS
Earnings
Before
Income
Taxes
Net
Earnings
Diluted
EPS
As Reported (GAAP)
$ 1,918
$ 1,623
$ 6.80
$ 1,953
$ 1,684
$ 6.73
Mark-to-market investment losses1
14
10
0.04
14
11
0.04
As Adjusted (Non-GAAP)
$ 1,932
$ 1,633
$ 6.84
$ 1,967
$ 1,695
$ 6.77
1
Includes changes in valuations of the company’s net assets and liabilities for deferred compensation plans and early-stage company investments.
Webcast and Conference Call Information
Lockheed Martin Corporation will webcast live the earnings results conference call (listen-only mode) on Tuesday, Oct. 22, 2024, at 11:00 a.m. ET on the Lockheed Martin Investor Relations website at www.lockheedmartin.com/investor. The accompanying presentation slides and relevant financial charts are also available at www.lockheedmartin.com/investor.
For additional information, visit the company’s website: www.lockheedmartin.com.
About Lockheed Martin
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at www.lockheedmartin.com.
Forward-Looking Statements
This news release contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin’s current expectations and assumptions. The words “believe,” “estimate,” “anticipate,” “project,” “intend,” “expect,” “plan,” “outlook,” “scheduled,” “forecast” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as:
the company’s reliance on contracts with the U.S. Government, which are dependent on U.S. Government funding and can be terminated for convenience, and the company’s ability to negotiate favorable contract terms;budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms and the debt ceiling and the potential for government shutdowns and changing funding and acquisition priorities;risks related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program;planned production rates and orders for significant programs, compliance with stringent performance and reliability standards, and materials availability, including government furnished equipment;the timing of contract awards or delays in contract definitization as well as the timing and customer acceptance of product deliveries and performance milestones;the company’s ability to recover costs under U.S. Government contracts and the mix of fixed-price and cost-reimbursable contracts;customer procurement policies that shift risk to contractors, including competitively bid programs with fixed-price development work or follow-on production options or other financial risks; and the impact of investments, cost overruns or other cost pressures and performance issues on fixed price contracts;changes in procurement and other regulations and policies affecting the company’s industry, export of its products, cost allowability or recovery, preferred contract type, and performance and progress payments policy;performance and financial viability of key suppliers, teammates, joint ventures (including United Launch Alliance), joint venture partners, subcontractors and customers;economic, industry, business and political conditions including their effects on governmental policy;the impact of inflation and other cost pressures;the impact of pandemics and epidemics on the company’s business and financial results, including supply chain disruptions and delays, employee absences, and program delays;government actions that prevent the sale or delivery of the company’s products (such as delays in approvals for exports requiring Congressional notification);trade policies or sanctions (including Chinese sanctions on the company or its suppliers, teammates or partners, U.S. Government sanctions on Türkish entities and persons, and indirect effects of sanctions on Russia to the company’s supply chain);the company’s success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales;changes in foreign national priorities and foreign government budgets and planned orders, including potential effects from fluctuations in currency exchange rates;the competitive environment for the company’s products and services, including competition from startups and non-traditional defense contractors;the company’s ability to develop and commercialize new technologies and products, including emerging digital and network technologies and capabilities;the company’s ability to benefit fully from or adequately protect its intellectual property rights;the company’s ability to attract and retain a highly skilled workforce and the impact of work stoppages or other labor disruptions;cyber or other security threats or other disruptions faced by the company or its suppliers;the company’s ability to implement and continue, and the timing and impact of, capitalization changes such as share repurchases, dividend payments and financing transactions;the accuracy of the company’s estimates and projections;changes in pension plan assumptions and actual returns on pension assets; cash funding requirements and pension risk transfers and associated settlement charges;realizing the anticipated benefits of acquisitions or divestitures, investments, joint ventures, teaming arrangements or internal reorganizations, and market volatility affecting the fair value of investments that are marked to market;the company’s efforts to increase the efficiency of its operations and improve the affordability of its products and services, including through digital transformation and cost reduction initiatives;the risk of an impairment of the company’s assets, including the potential impairment of goodwill and intangibles;the availability and adequacy of the company’s insurance and indemnities;impacts of climate change and compliance with laws, regulations, policies, and customer requirements in response to climate change concerns;changes in accounting, U.S. or foreign tax, export or other laws, regulations, and policies and their interpretation or application, and changes in the amount or reevaluation of uncertain tax positions; andthe outcome of legal proceedings, bid protests, environmental remediation efforts, audits, government investigations or government allegations that the company has failed to comply with law, other contingencies and U.S. Government identification of deficiencies in its business systems.
These are only some of the factors that may affect the forward-looking statements contained in this news release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company’s filings with the U.S. Securities and Exchange Commission including, but not limited to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in the company’s most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q. The company’s filings may be accessed through the Investor Relations page of its website, www.lockheedmartin.com/investor, or through the website maintained by the SEC at www.sec.gov.
The company’s actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this news release speak only as of the date of its filing. Except where required by applicable law, the company expressly disclaims a duty to provide updates to forward-looking statements after the date of this news release to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this news release are intended to be subject to the safe harbor protection provided by the federal securities laws.
Lockheed Martin Corporation
Consolidated Statements of Earnings1
(unaudited; in millions, except per share data)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 17,104
$ 16,878
$ 52,421
$ 48,697
Cost of sales
(14,987)
(14,830)
(46,181)
(42,513)
Gross profit
2,117
2,048
6,240
6,184
Other income (expense), net
23
(6)
77
30
Operating profit
2,140
2,042
6,317
6,214
Interest expense
(256)
(237)
(772)
(662)
Non-service FAS pension income
16
111
47
332
Other non-operating income, net
18
37
109
69
Earnings before income taxes
1,918
1,953
5,701
5,953
Income tax expense
(295)
(269)
(892)
(899)
Net earnings
$ 1,623
$ 1,684
$ 4,809
$ 5,054
Effective tax rate
15.4 %
13.8 %
15.6 %
15.1 %
Earnings per common share
Basic
$ 6.83
$ 6.75
$ 20.12
$ 20.04
Diluted
$ 6.80
$ 6.73
$ 20.05
$ 19.97
Weighted average shares outstanding
Basic
237.5
249.3
239.0
252.2
Diluted
238.6
250.2
239.9
253.1
Common shares reported in stockholders’
equity at end of period
236
247
1
The company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business processes, which was on Sept. 29, for the third quarter of 2024 and Sept. 24, for the third quarter of 2023. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods, as the company’s fiscal year ends on Dec. 31.
Lockheed Martin Corporation
Business Segment Summary Operating Results
(unaudited; in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
%
Change
Sept. 29,
2024
Sept. 24,
2023
%
Change
Net sales
Aeronautics
$ 6,487
$ 6,717
(3 %)
$ 20,609
$ 19,861
4 %
Missiles and Fire Control
3,175
2,939
8 %
9,270
8,082
15 %
Rotary and Mission Systems
4,367
4,121
6 %
13,003
11,528
13 %
Space
3,075
3,101
(1 %)
9,539
9,226
3 %
Total net sales
$ 17,104
$ 16,878
1 %
$ 52,421
$ 48,697
8 %
Operating profit
Aeronautics
$ 659
$ 671
(2 %)
$ 2,089
$ 2,064
1 %
Missiles and Fire Control
456
398
15 %
1,217
1,146
6 %
Rotary and Mission Systems
483
482
— %
1,408
1,286
9 %
Space
272
259
5 %
943
851
11 %
Total business segment operating
profit
1,870
1,810
3 %
5,657
5,347
6 %
Unallocated items
FAS/CAS operating adjustment
406
414
1,218
1,245
Impairment and severance charges
—
—
(87)
—
Intangible asset amortization expense
(61)
(61)
(183)
(185)
Other, net
(75)
(121)
(288)
(193)
Total unallocated items
270
232
16 %
660
867
(24 %)
Total consolidated operating
profit
$ 2,140
$ 2,042
5 %
$ 6,317
$ 6,214
2 %
Operating margin
Aeronautics
10.2 %
10.0 %
10.1 %
10.4 %
Missiles and Fire Control
14.4 %
13.5 %
13.1 %
14.2 %
Rotary and Mission Systems
11.1 %
11.7 %
10.8 %
11.2 %
Space
8.8 %
8.4 %
9.9 %
9.2 %
Total business segment operating
margin
10.9 %
10.7 %
10.8 %
11.0 %
Total consolidated operating
margin
12.5 %
12.1 %
12.1 %
12.8 %
Lockheed Martin Corporation
Selected Financial Data
(unaudited; in millions)
2024
Outlook
2023
Actual
Total FAS income CAS cost
FAS pension income
$ —
$ 378
Less: CAS pension cost
1,685
1,725
Total FAS/CAS pension adjustment
$ 1,685
$ 2,103
Service and non-service cost reconciliation
FAS pension service cost
$ (60)
$ (65)
Less: CAS pension cost
1,685
1,725
Total FAS/CAS pension operating adjustment
1,625
1,660
Non-service FAS pension income
60
443
Total FAS/CAS pension adjustment
$ 1,685
$ 2,103
Lockheed Martin Corporation
Consolidated Balance Sheets
(unaudited, in millions, except par value)
Sept. 29,
2024
Dec. 31,
2023
Assets
Current assets
Cash and cash equivalents
$ 3,151
$ 1,442
Receivables, net
2,141
2,132
Contract assets
14,224
13,183
Inventories
3,234
3,132
Other current assets
461
632
Total current assets
23,211
20,521
Property, plant and equipment, net
8,454
8,370
Goodwill
10,800
10,799
Intangible assets, net
1,979
2,212
Deferred income taxes
3,105
2,953
Other noncurrent assets
7,971
7,601
Total assets
$ 55,520
$ 52,456
Liabilities and equity
Current liabilities
Accounts payable
$ 3,221
$ 2,312
Salaries, benefits and payroll taxes
3,076
3,133
Contract liabilities
9,051
9,190
Current maturities of long-term debt
142
168
Other current liabilities
2,320
2,134
Total current liabilities
17,810
16,937
Long-term debt, net
19,179
17,291
Accrued pension liabilities
6,077
6,162
Other noncurrent liabilities
5,254
5,231
Total liabilities
48,320
45,621
Stockholders’ equity
Common stock, $1 par value per share
236
240
Additional paid-in capital
—
—
Retained earnings
15,657
15,398
Accumulated other comprehensive loss
(8,693)
(8,803)
Total stockholders’ equity
7,200
6,835
Total liabilities and equity
$ 55,520
$ 52,456
Lockheed Martin Corporation
Consolidated Statements of Cash Flows
(unaudited; in millions)
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Operating activities
Net earnings
$ 4,809
$ 5,054
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization
1,100
1,009
Stock-based compensation
229
221
Deferred income taxes
(174)
(395)
Impairment and severance charges
87
—
Changes in assets and liabilities
Receivables, net
(9)
100
Contract assets
(1,041)
(1,287)
Inventories
(102)
(224)
Accounts payable
970
1,731
Contract liabilities
(139)
(552)
Income taxes
66
(81)
Qualified defined benefit pension plans
(2)
(283)
Other, net
155
262
Net cash provided by operating activities
5,949
5,555
Investing activities
Capital expenditures
(1,103)
(987)
Other, net
149
(4)
Net cash used for investing activities
(954)
(991)
Financing activities
Issuance of long-term debt, net of related costs
1,980
1,975
Repayments of long-term debt
(168)
(115)
Repurchases of common stock
(2,700)
(3,000)
Dividends paid
(2,281)
(2,289)
Other, net
(117)
(131)
Net cash used for financing activities
(3,286)
(3,560)
Net change in cash and cash equivalents
1,709
1,004
Cash and cash equivalents at beginning of period
1,442
2,547
Cash and cash equivalents at end of period
$ 3,151
$ 3,551
Lockheed Martin Corporation
Other Financial and Operating Information
(unaudited; in millions, except for aircraft deliveries and weeks)
Backlog
Sept. 29,
2024
Dec. 31,
2023
Aeronautics
$ 50,988
$ 60,156
Missiles and Fire Control
40,722
32,229
Rotary and Mission Systems
37,571
37,726
Space
36,412
30,456
Total backlog
$ 165,693
$ 160,567
Quarters Ended
Nine Months Ended
Aircraft Deliveries
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
F-35
48
30
48
80
F-16
2
1
9
2
C-130J
4
7
13
13
Government helicopter programs
24
3
47
24
Commercial helicopter programs
—
3
—
4
International military helicopter programs
4
1
9
1
Number of Weeks in Reporting Period1
2024
2023
First quarter
13
12
Second quarter
13
13
Third quarter
13
13
Fourth quarter
13
14
1
Calendar quarters are typically comprised of 13 weeks. However, the company closes its books and records on the last Sunday of each month, except for the month of Dec., as its fiscal year ends on Dec. 31. As a result, the number of weeks in a reporting quarter may vary slightly during the year and for comparable prior year periods.
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SOURCE Lockheed Martin Corporation
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Technology
LG INSTAVIEW™ REFRIGERATOR SURPASSES 5.3 MILLION IN GLOBAL SALES
Published
19 minutes agoon
July 24, 2026By
Chosen by Customers Worldwide, LG’s Instaview Refrigerator Innovation Continues to Redefine the Kitchen Experience a Decade After Its Debut
News Summary
LG Electronics’ InstaView™ refrigerator celebrates the 10th anniversary of its 2016 launch by exceeding 5.3 million units in cumulative global sales.LG’s iconic “Knock Twice, See Inside” feature broke convention, offering a blend of user convenience, energy efficiency, and aesthetic value that set a new industry standard.LG InstaView refrigerators continue to gain traction worldwide, leading the refrigerator category in North America while seeing significant growth across Europe, Asia and Latin America.Over the past decade, LG InstaView refrigerator has won numerous prestigious design and innovation awards, including Red Dot, iF, IDEA and CES.
SEOUL, South Korea, July 24, 2026 /PRNewswire/ — LG Electronics’ (LG) InstaView™ refrigerator, which allows users to see inside without opening the door, has reached a major milestone on its 10th anniversary, surpassing 5.3 million units in cumulative global sales since its 2016 launch.
Trusted by Consumers Around the World
Since launching the LG InstaView refrigerator in 2016, LG has sold a remarkable 5.3 million units – equivalent to selling roughly one unit every minute.
LG InstaView refrigerator has seen strong customer demand globally, with North America representing its strongest market and accounting for about 30 percent of cumulative sales to date. In Europe, InstaView refrigerator has also been well received by consumers who place high value on energy efficiency, sustainability and food preservation performance. Sales are also steadily rising in Asia and Latin America, driven by growing demand for premium appliances.
An Innovation That Redefined the Refrigerator
InstaView redefined how consumers interact with their refrigerators by allowing them to see inside without opening the door. This feature allows users to check the fridge’s contents without opening the door and helps reduce unnecessary cold-air loss associated with frequent door opening. Over the past decade, its innovation has been recognized by international media and honored with numerous accolades from major global design and innovation awards, including the Red Dot Design Award, iF Design Award, IDEA, and the CES Innovation Award.
From Functional Benefit to Lifestyle Value
LG’s analysis of global customer reviews shows that consumer appreciation for the InstaView refrigerator and its eponymous feature has evolved over time, shifting from an initial focus on the functional benefits to the overall sense of satisfaction that it provides. While early feedback centered on the convenience of knocking twice to see inside and the reduction of cold air loss, more recent reviews increasingly highlight InstaView’s refined design and the enjoyment it brings to everyday kitchen use.
“For a decade now, LG InstaView refrigerator has stood as a testament to our leadership in the home appliance market and to our deep understanding of customers’ lifestyles,” said Baek Seung-tae, president of the LG Home Appliance Solution Company. “This milestone reflects our success in creating not just an innovative feature, but a more convenient and enjoyable kitchen experience. Building on our advanced AI, refrigeration and food preservation technologies, we will continue to lead the evolution of the kitchen experience with customer-centric innovations.”
About LG Electronics Home Appliance Solution Company
The LG Home Appliance Solution Company (HS) is a global leader in home appliances and AI home solutions. By leveraging industry-leading core technologies, the HS Company is committed to enhancing consumers’ quality of life and promoting sustainability. The company develops thoughtfully designed kitchen and living appliance solutions and has recently integrated LG’s Robot Business Division to incorporate advanced robot technologies into its home solutions. Together, these products offer enhanced convenience, exceptional performance, efficient operation and sustainable lifestyle solutions. For more news on LG, visit www.LG.com/global/newsroom/.
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SOURCE LG Electronics
Technology
Alpha Ladder Hosts Globalization Forum, Debuts Proprietary AI Platform AgentX
Published
19 minutes agoon
July 24, 2026By
HONG KONG, July 24, 2026 /PRNewswire/ — On 9 July, Alpha Ladder hosted a tech globalization forum at LEAP East 2026 in Hong Kong under the theme “Connecting Industrial Innovation, Unlocking New Global Growth Opportunities” — and used the occasion to officially unveil AgentX, its proprietary AI‑powered solution.
The session brought together more than a dozen distinguished speakers from sectors spanning artificial intelligence, embodied intelligence, biotechnology, fintech, enterprise services, and legal — all of whom shared first‑hand observations and practical experience navigating global expansion.
Paul Pang, Head of AI at Alpha Ladder, unveiled the Group’s new financial AI agent, AgentX, during the product launch. He observed that the rapid proliferation of AI agents has rendered traditional cross‑border financial delivery models ill‑suited to the evolving AI industry landscape. Conventional local plugin integrations carry significant risks, including code tampering, data leakage, and compromised asset security.
He also noted that expanding enterprises frequently face a persistent disconnect between their business tools and financial pipelines. Core operational systems — covering expense reimbursement, payroll, and account reconciliation — often operate in silos, isolated from cross‑border payment and treasury management frameworks. The resulting reliance on manual workflows leads to chronic inefficiency and inflated operating costs.
To tackle these industry pain points head‑on, Alpha Ladder introduced AgentX — a purpose‑built platform grounded in its proprietary AI‑native architecture. Powered by the Core Finance skill suite and the standardised MCP protocol, AgentX is compatible with all major large language models and enables AI agents to directly access Alpha Ladder’s full spectrum of cross‑border financial services.
The platform is further equipped with VisionX, an intelligent risk control engine that performs cross‑verification across multiple data sources to significantly sharpen the detection of on‑chain risks. A built‑in regulatory sandbox ensures full segregation of transactions and data within compliance boundaries, effectively closing critical security gaps that have long plagued the industry.
Beyond its core risk and compliance capabilities, AgentX offers extensive ecosystem adaptability, enabling rapid integration with vertical use cases such as travel reimbursement, global payroll, and asset management — creating a unified, closed‑loop framework that bridges business operations and finance. Through its open ecosystem model, AgentX empowers small and mid‑sized enterprises expanding globally by tearing down the silos between operational workflows and cross‑border financial services. In doing so, it delivers one‑stop, intelligent cross‑border financial services and drives comprehensive AI‑driven transformation across globalising industries.
Yao Yuan, Vice President of AgiBot for MENA, Turkey, and Asia Pacific, remarked that 2026 marks the year AgiBot transitions from R&D to commercial deployment. Having spent the previous three years honing its products and technology while consolidating its position in the domestic market, the company is now scaling up commercial operations and accelerating its global expansion.
He articulated three core pillars underpinning AgiBot’s global strategy. First, the company is moving to seize the critical window for mass industrial adoption as the embodied intelligence sector enters a new growth cycle. Second, humanoid robots are emerging as a key enabler of industrial upgrading and national digital transformation strategies across economies. Third, overseas deployment, data accumulation, and localized delivery are creating a valuable feedback loop — one that feeds back into domestic R&D and forms a closed loop connecting global technology development with commercial execution.
Luo Yi, General Manager of 51Aes South China (a subsidiary of 51World), shared that the company was officially listed on the Hong Kong Stock Exchange on 30 December 2025 under the ticker 6651.HK. Guided by its vision to digitally replicate the Earth’s 510 million square kilometres, 51World is committed to building a seamless bridge between the digital and physical worlds.
As the industry enters a new era of Physical AI, physically accurate digital simulation environments have become a fundamental prerequisite for large‑scale training of embodied intelligent systems. Leveraging three core pillars — global spatial foundation models, simulation training platforms, and synthetic data pipelines — the company has built a complete, closed-loop technology system. Its commercial portfolio comprises three flagship offerings: the 51Aes digital twin platform, the 51Sim synthetic data and simulation platform, and the 51Earth digital earth platform.
As the core engine powering Physical AI, 51Sim delivers high‑fidelity simulation training environments and robust synthetic data generation capabilities for embodied intelligence sectors including autonomous driving, smart equipment, and robotics. It enables efficient training and validation of AI systems within virtual environments and currently serves over 100 enterprise clients across autonomous mobility and embodied intelligence verticals. Looking ahead, the company will continue to deepen the integration of AI with the real economy, unlocking greater technological value and industrial impact across broader global markets.
Xu Leyang, Co‑founder of Seekee, observed that vast segments of the global population have yet to gain meaningful access to AI. With “everyday users” at the heart of its mission, Seekee is building accessible, consumer‑facing AI products tailored for the world’s two billion ordinary people.
The team has strategically focused on Latin America — an underserved blue‑ocean market largely overlooked by major tech players. Few leading global large language models have dedicated meaningful R&D or localisation efforts to Spanish and Portuguese, the region’s dominant languages. By capitalising on the region’s distinctive linguistic landscape, local user behaviour patterns, and a proprietary repository of region‑specific language data amassed over time, Seekee has built a competitive moat that is difficult to replicate.
According to Sensor Tower, a mobile analytics platform, Seekee ranked eighth globally in the 2025 generative AI app download charts. Within Latin America, its brand recognition is on par with ChatGPT. Launched just over a year ago, the platform has already amassed tens of millions of monthly active users and demonstrated strong user retention.
Wu Xin, Partner and Global Head of AI Applications at BorderX Lab, delivered a presentation themed “Power of Agent Plus.” Drawing on real‑world deployments within the fashion and luxury sectors, he explained that AI agents are fundamentally reshaping traditional cross‑border industries and unlocking significant efficiency gains across the entire value chain.
E‑commerce, he noted, is undergoing a paradigm shift. Competition has moved beyond capturing user attention to precisely identifying consumer intent, with AI agents emerging as a critical instrument for surfacing latent global consumption demand. Powered by proprietary technology and data infrastructure, BorderX Lab has built a global consumer network that is helping redefine how Chinese cross‑border consumer tech reaches the world.
He further observed that agent‑enabled payments will form the bedrock of agent‑driven e‑commerce, and expressed optimism about jointly exploring blue‑ocean opportunities with Alpha Ladder.
Yang Mingyuan, Senior Investment & Financing Manager at QCraft, observed that among the broader Physical AI landscape, autonomous driving stands out as the first segment to achieve mass production at scale, sustainable commercial profitability, and rapid real‑world deployment.
The company’s core competitive advantage lies in its unified, self‑developed technical foundation — one that underpins both its L2+ advanced driver assistance systems and its multi‑scenario L4 autonomous driving capabilities. This homologous architecture also serves as a strategic springboard for QCraft’s broader push into general Physical AI. Its fully in‑house toolchain and data platform form a formidable competitive moat, while the company’s “Autonomous Driving Super Factory” system standardises the entire model training and simulation testing lifecycle — covering the full data pipeline to enable continuous, high‑velocity iteration and optimisation of its algorithm models.
He Liang, Chief Financial Officer of Yidianyun, shared that the company — a leading domestic provider of office IT infrastructure — is now pivoting to become an office AI infrastructure enabler. Its mission is to lower the barrier to AI compute access for enterprises through remanufacturing technology and subscription‑based models.
Yidianyun has built a four‑tier business framework that underpins its cost and service advantages, with a strategic focus on edge‑side AI hardware across AI PCs, AI workstations, and AI servers. He noted that direct procurement of AI hardware entails substantial one‑off capital expenditure for small and medium‑sized enterprises. Subscription models, by contrast, significantly ease funding pressure and hedge against upfront investment risk — a key factor driving the rapid growth of its proprietary AI workstation business.
For overseas expansion, Yidianyun plans to launch pilot cross‑border operations from Hong Kong as its initial hub, with the potential to extend its reach to additional international markets in due course.
Liu Chenxin, Assistant to the Director of the National Institute of Biological Sciences, Beijing (NIBS), shared insights at the forum. With a strong track record in research commercialisation, NIBS has incubated a number of benchmark biopharma companies including Huahui Anjian, Vitaraylon, and Denovo Biotech. Drawing on years of translational experience, the institute has comprehensively upgraded its established commercialisation framework and officially launched BISON — a new innovation incubation hub designed to tackle the persistent high‑risk challenges inherent in biopharmaceutical investment through a unique translational model and commercial logic.
Unlike conventional technology‑driven incubation models, BISON places market demand at the core of its approach. It partners with leading tertiary hospitals to identify clinical pain points at the front end, while aligning with pharmaceutical companies at the back end to reverse‑engineer original drug pipelines based on industry needs. Looking ahead, BISON will continue to leverage its deep foundation in original research to incubate high‑value biopharmaceutical innovations, helping domestically developed first‑in‑class drugs reach global markets and supporting the international expansion of China’s biotech industry.
Lei Zhicheng, Deputy General Manager of Mango Finance Limited, observed that the institutional advantages of Hong Kong’s capital market, combined with deepening economic and trade ties with the Middle East, have opened up new channels for Chinese tech innovators to access global capital. Closely aligned with policy directions and enterprises’ internationalisation ambitions, Mango Finance is focused on listing incubation and cross‑border expansion services, fostering service synergies through close collaboration with a diverse network of professional partners.
As an established securities firm, the company is steadily expanding its digital finance footprint in step with regulatory developments. Lei expressed keen interest in establishing system‑level connectivity with Alpha Ladder, and leveraging AI and cutting‑edge digital technologies to accelerate the digital transformation and upgrade of traditional securities operations.
Kevin Chen, CEO of Boost Bank and Founder of Aicapay, observed that as the Belt and Road Initiative continues to gain momentum, emerging markets across Africa, the Middle East, and Latin America are undergoing rapid economic and industrial transformation. Combined with surging outbound investment and cross‑border trade from China, the cross‑border finance sector in these markets presents enormous growth potential.
Boost Bank specialises in building localised compliance frameworks. Backed by multi‑jurisdictional licences, on‑the‑ground risk control teams, and deep‑rooted local financial resources, the company has established a fully integrated, end‑to‑end cross‑border capital loop — delivering tailored, client‑specific solutions for enterprises expanding globally. Chen underscored the strong strategic complementarity between the two firms and signalled Boost Bank’s intent to join forces with Alpha Ladder in building a fintech service ecosystem that empowers Chinese companies to seize opportunities in emerging markets worldwide.
Yin Li, Partner at Shanghai Landi Law Firm, shared that the firm established its first overseas offices a decade ago, making it one of China’s early legal practices to focus on cross‑border corporate services. It provides Chinese enterprises with full‑spectrum legal support spanning overseas investment filing, intellectual property protection, and cross‑border capital repatriation.
Against a backdrop where overseas expansion has evolved from conventional trade to high‑value industrial globalisation — marked by the coordinated export of technology, production capacity, and capital — and given the strong alignment between Middle Eastern development agendas and the Belt and Road Initiative, Chinese enterprises pursuing comprehensive deployment in the region have generated robust demand for localised legal services. This, he noted, is the key driver behind the firm’s intensified focus on the Middle East market.
Yin emphasised that proactive compliance is the core moat for enterprises going global. Businesses must conduct thorough assessments of local regulatory and legal frameworks before entering overseas markets. Leveraging its “on‑the‑ground global presence” model — with coordinated teams across China and multiple international jurisdictions — the firm conducts advance due diligence to identify and mitigate legal risks inherent in cross‑border operations.
About Alpha Ladder:
Alpha Ladder is a Singapore-regulated fintech group focused on developing a world-leading, one-stop, fully compliant financial infrastructure — delivering secure, efficient cross-border financial solutions for enterprises going global. The Group holds core licences issued by the Monetary Authority of Singapore (MAS), covering securities, futures, fund management, custody, RWA asset exchange, and Major Payment Institution (MPI). We also maintain regulatory approvals in Canada, and are actively expanding our footprint across key global financial hubs including Switzerland, Dubai, and Hong Kong, building a globally compliant regulatory network. By leveraging AI to reshape compliance, risk management, and treasury operations, Alpha Ladder empowers enterprises to reduce costs, enhance efficiency, and achieve sustainable global growth.
For more information, please visit our official website: www.alphaladder.hk
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SOURCE Alpha Ladder
Technology
UOB Asset Management Highlights Global Resilience Despite Heightened Uncertainty
Published
19 minutes agoon
July 24, 2026By
SINGAPORE, July 24, 2026 /PRNewswire/ — UOB Asset Management (UOBAM) has released its 3Q 2026 Quarterly Investment Strategy, highlighting the global economy’s resilience in the face of persistent headwinds, including inflation, tariffs, geopolitical tensions and energy market volatility.
Despite repeated challenges over the past 18 months, economic activity has remained robust. Corporate earnings have held up across major regions, labour markets have remained resilient, and continued investment in artificial intelligence (AI) infrastructure is providing a powerful tailwind for growth.
While uncertainty remains elevated, the global economy’s resilience has reinforced confidence that the current expansion remains durable, even as risks continue to evolve.
On interest rates, UOBAM’s base case is that the US Federal Reserve is more likely to remain on an extended pause than embark on a new rate-hiking cycle. Although inflation remains sticky and recent geopolitical developments have raised upside risks, the firm continues to see evidence of moderating underlying inflation pressures, particularly in housing and wages.
Within equities, UOBAM remains positive on Asia and has upgraded Onshore China to overweight from underweight. Despite strong market gains, Asia continues to trade at a valuation discount to global equities, even as earnings growth has accelerated. UOBAM believes this combination of strong earnings momentum and attractive valuations presents a compelling opportunity for investors. In China, improving industrial profits and continued growth in higher-value sectors have strengthened the investment case for selected areas of the market, particularly those linked to AI, semiconductors, energy infrastructure and advanced manufacturing.
Anthony Raza, Head of UOBAM Multi-Asset Strategy, said, “The key story for investors is that the global economy has repeatedly withstood shocks without derailing growth. Despite a more uncertain backdrop, we continue to see attractive opportunities in Asia, where strong earnings growth is supported by compelling valuations, and we maintain gold as a preferred allocation as investors navigate an increasingly complex environment.”
In its asset allocation strategy, UOBAM remains overweight equities, diversified across fixed income and underweight cash. The firm continues to favour the United States and Asia within equities, while retaining a positive outlook on gold. Supported by strong central bank demand and its role as a safe-haven asset during periods of uncertainty, gold remains an important source of portfolio diversification.
For deeper insights across equities, fixed income, currencies and commodities, read the full 3Q 2026 Investment Strategy: https://uobam.com.sg/qis3q26
About UOB Asset Management
UOB Asset Management Ltd (UOBAM) is a wholly-owned subsidiary of United Overseas Bank Limited. Established in 1986, UOBAM has 40 years of experience in managing collective investment schemes and discretionary funds in Singapore, making us among the largest unit trust managers by assets under management. As of 30 June 2026, we manage 63 unit trusts in Singapore and together with our subsidiaries, oversee S$44.3 billion in clients’ assets.
Headquartered in Singapore, UOBAM has a strong presence across Asia, with business and investment offices in Brunei, Indonesia, Japan, Malaysia, Thailand and Vietnam. Our network includes UOB Islamic Asset Management Sdn Bhd in Malaysia, a joint venture with Ping An Fund Management Company Limited (China) and strategic alliances with partners such as Wellington Management Singapore.
UOBAM is one of the region’s most awarded asset managers, with over 380 awards won. In 2025, we were recognised as the Best Regional Asset Management Company by the Asia Asset Management and previously named Best Asset Management House in Asia – 20 Years in 2023. Our digital innovation has also earned top honours, including Best Digital Wealth Management in Asia[1] and Best Robo Advisory Initiative[2] for four consecutive years as of 2025.
As a leader in sustainable investing, UOBAM was awarded Best application of ESG in ASEAN[3] (2023) and has received multiple sustainability accolades in Indonesia and Thailand. Our artificial intelligence capabilities were also recognised with the Most Innovative Application of Artificial Intelligence (ASEAN) for three consecutive years[4].
Connect with us: LinkedIn | Facebook
[1] Awarded by Asia Asset Management
[2] Awarded by The Digital Banker for the Global Retail Banking Innovations Award
[3] Awarded by Asia Asset Management
[4] As of 2026, by Asia Asset Management
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SOURCE UOB Asset Management
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